A substantial portfolio of Outback roadhouse, retail and accommodation assets is set to enter the market with a price tag of $30 million, including the Erldunda Roadhouse, Northern Territory, and the Border Village and Nullarbor roadhouses in South Australia - Being marketed by Trudy Crooks, Kelli Crouch and Ian Crooks.
Specialist national commercial agency Resort Brokers has listed the Erldunda Roadhouse, Northern Territory, and the Border Village and Nullarbor roadhouses in South Australia for sale in one line.
Resort Brokers national sales manager, Trudy Crooks, told The Hotel Conversation that the portfolio showed an overall 2017-18 net profit of $4.3 million on a turnover that exceeded $20 million.
“These Outback travel centres are rare freehold businesses with incredible positions in relation to iconic Australian destinations including Uluru, Kata Tjuta, Kings Canyon and the Nullabor,” Ms Crook said.
“Their incomparable highway sites guarantee an enduring market advantage because every traveller needs the services they offer, and their location rules out competition entry."
“Importantly, the high returns are driven by multiple income streams across a range of sectors from fuel service and retail to tourism and hospitality.”
The portfolio is being sold by private Brisbane-based company, Nullabor Holdings. “It has shown exceptional growth approaching 20 per cent per annum over the last three years,” Ms Crooks said.
“We are taking it to market in one line as a high-performing freehold going concern that is fully established with quality staff in place, and easily operated remotely.
“That said, the seller is flexible, realising it will appeal to a range of buyers and some may prefer to purchase a single property and operate it as hands-on onsite managers.”
Each of the travel centres provides a fuel service, motel and/or cabins, caravan and camping sites, extended-offer retail, takeaways, restaurant and bar. The portfolio also boasts significant visitor attractions and, in one case, a gaming component.
Erldunda Roadhouse, on four hectares at the turnoff to Uluru where the Lasseter and Stuart highways meet, 200 kilometres south of Alice Springs, is famously known as ‘The Centre of The Centre’ of Australia. It is a popular staging post for Red Centre travellers with a Shell roadhouse, 46 motel units, 96 caravan sites, extensive guest amenities and rare phone and internet service courtesy of onsite towers.
Also part of the memorable ‘Erldunda experience’ are 30 emus, numerous kangaroos, an adopted camel called Carlotta, and ‘Cluck Norris’ the rooster.
The two southern properties occupy the only two freehold commercial sites on the South Australian stretch of Eyre Highway across the Nullarbor.
Border Village Roadhouse, as the name suggests, is must-do checkpoint catering to myriad traveller needs at the S.A. – W.A. border.
Its four-hectare site includes a BP-branded roadhouse, 34 motel rooms, three backpacker rooms, five two-bedroom cabins, 24 caravan sites, a licensed restaurant and bar, convenience store and 10 gaming machines.
‘Rooey II’ the big kangaroo is a renowned five metre high landmark that signposts another attraction, the Border Kangaroo Golf Hole No.6 on the Nullarbor Links, the 18-hole, par 73 course famed as the World’s Longest Golf Course.
Nullarbor Roadhouse is located 200 kilometres nearer to Adelaide with a vast 65-hectare site and similar facilities, including 27 motel rooms and 74 caravan sites.
Highlights include a replica of the original 1950s garage, extensive murals and artefacts, the Dingo’s Den fifth hole on the Nullabor links, and an airstrip from which popular whale-watching joy flights over the head of the Great Australian Bight are available.
Ms Crooks says the Outback travel centres portfolio was forecast to show further strong growth.
“These sites are perfectly positioned, entering the market at a time when tourism and visitor numbers throughout Australia’s Outback are surging,” she said.
“The caravan and camping market is thriving with a van built every five minutes during the working week, making it the fastest growing vehicle category in Australia."
“At the same time, the service station investment sector is strong with an appetite for quality assets, particularly given the non-discretionary nature of fuel sales and recent growth in fuel margins.”
The portfolio sale is being jointly handled by Ms Crooks, Resort Brokers’ S.A. broker Kelli Crouch, and managing director Ian Crooks.
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